Partnership is a commercial arrangement wherein two or more persons join together to do certain business or mercantile or trade activity with a common intention to share the profits.
Indian Partnership Act 1932 defines partnership as “the relation between persons who have agreed to share profits of the business carried on by all or any of them acting for all”. Formation of partnership has its origin in an agreement, either oral or in writing, between the partners to share the profit. With the passage of time and experience a Partnership Agreement in writing and registration thereof has become a necessity from practical view point concerning tax implications and benefits and court process.
Law Firm with in-depth knowledge and experience of business laws, corporate laws, taxation put in all their expertise in the preparation of Partnership Agreement defining the rights and obligations and authority of the partners inter se and with third parties. A Partnership Agreement contains terms as to nature of business, provision of capital, property of the firm, period of agreement, account and records, tax and other liabilities, diligence in the conduct of business, indemnification and reimbursement of partners by the firm and vice versa, Retirement of partner, Dissolution. For statutory duties and rights of the partners Indian Partnership Act 1932 may be looked into.
Types of Partnership Agreement:
- Partnership agreement between two individuals.
- Partnership agreement between four partners.
- Partnership agreement between two partnership firms.
- Partnership agreement for a single venture.
- Partnership agreement between a partnership firm and a Hindu Undivided Family.
- Partnership agreement between two limited companies.
- Partnership agreement between an individual and a limited company.
- Partnership agreement between an individual A Partnership Firm and a Company.
- Agreement for Conversion of A Private Limited Company into A Partnership